Acting on a tip off, police intercepted a mini-lorry in which large quantity of fake gutka packets were being exported to neighbouring districts worth Rs 5.25 lakh at Jawargi, about 40 km from here yesterday. The vehicle was impounded.

Police said the racketeers had been manufacturing fake gutka packets of various popular brands here and were exporting to the neighbouring district.

The arrested persons Malikharjun, Rachayya Gurumurthy and Ashok were remanded to judicial custody.